Broadcasters formulate Plan B as ad firms remain stay adamant

15 Oct 2007

1
Mumbai: With advertisers rebelling against the 25 per cent surcharge implemented by broadcasters in the face of rising input costs and inflation, the latter are now creating other options to avoid mutually lose-lose situation.Advertisers have made it known that they are toying with the idea of cancelling these spots in favour of other media options.

Countermeasures from the broadcasters came have taken the form of more pitches to advertisers such as public sector units, government agencies and non- AAAI accredited companies. They also seem to favour ads from companies buying ad-time directly from broadcasters, rather than through the traditional route of media agencies.

Reportedly, broadcasters, while offering ad-slots to public sector majors like Indian Oil preferred to "remain flexible" about these advertisers having to pay the surcharge, and have reportedly offered similar terms to companies buying their own media. This has created some controversy in the matter.

Media buying agencies and broadcasters say that a better understanding should emerge later in the week, through discussions with various parties trying to expedite a resolution of the problem.

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